How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government to finance a government program?

a. One dollar.

b. Less than one dollar because the administration of and compliance with the tax laws creates jobs for people.

c. Less than one dollar because of the efficiency of government operations.

d. More than a dollar due to the opportunity cost of resources used to collect and comply with taxes, as well as the reduction in surplus on productive exchanges prevented by taxes Real (adjusted for inflation) federal spending per person in the United States

a. has not changed much since the founding of the country.

b. increased more rapidly during the nineteenth century than during the twentieth century.

c. has increased dramatically over the past 100 years.

d. increased rapidly during the first half of the twentieth century but has changed very little since 1950. During the last four decades, defense expenditures have

a. steadily accounted for approximately one-half of federal expenditures.

b. steadily accounted for less than 10 percent of federal expenditures.

c. been increasing as a share of federal expenditures.

d. been declining as a share of federal expenditures. OECD data for 1960 through 2009 indicates that a 10 percent increase in government expenditures as a percent of GDP

a. increases economic growth by about 5 percent.

b. increases economic growth by about 2 percent.

c. has no effect on economic growth.

d. reduces economic growth by about 1 percent. As government becomes larger and larger as a share of the economy, economic growth is likely to decline because

a. taxes are reduced to levels that are inconsistent with economic efficiency.

b. governments are involved in many activities for which they are ill-suited.

c. tax-transfer activities are reduced and sometimes virtually eliminated.

d. governments do not spend enough on the provision of key public goods like education. Compared to the situation during the first 125 years of the United States (1790-1915), today total government expenditures are ____ share of the economy, and a greater proportion of those expenditures take place at the ____ level. (Fill in the blanks)

a. a smaller; federal

b. about the same; federal

c. a larger; federal

d. a larger; state and local